Remarks by Eastern Hon. Lubabalo Oscar Mabuyane at the cannabis investment announcement held at Coega SEZ

Program Director,
Members of the Executive Council,
The Mayor of Nelson Mandela Metro
Members of the Board of Directors,
Department Heads and CEOs of State-Owned Entities,
Captains of Industry, particularly the Investor Company investing in Cannabis.
Ladies & Gentlemen

In my 2019 maiden State of the Province address as the Premier of the Eastern Cape Province, as the Political Leadership of the 6th Administration, I stated that the government would investigate cannabis as an economic stimulant and I further declared that  “We cannot be missing in action when our province is endowed with a crop that can be ploughed and processed to make medicinal products and create jobs for our people” and through an inclusive industrial value chain approach.

Since 2019, as expressed in the successive State of the Province Addresses and Policy Speeches by the Premier and MEC for DRDAR, the Province has been unequivocal in supporting the cannabis industry development.

We are assembled here today to bear testimony to the culmination of our collective efforts as we continue to chip away at the wood of socio-economic progress to carve a beautiful sculpture of the Eastern Cape we want that our forebears will be proud of.
That this investment announcement takes place two days after the celebration of Freedom Day, and serves as a special homage to the:

Province’s indigenous cannabis growers and knowledge holders who withstood harassment, the destruction and spraying of their cannabis crops with dangerous chemicals, arrests, criminalization, and even death to protect this wonder plant/crop owned by Africans from being obliterated.
As this Administration, we are concerned by the slow progress of the country’s policymakers in expediting the full implementation of the Cannabis Phakisa resolution, as resolved in the Cannabis Phakisa Action Lab held in June 2023 for the creation of an enabling cannabis regulation framework that encompasses the commercial exploitation of whole plant, all purposes legislation.

Whilst we await the whole plant, all-purpose legislation, we further implore the National Cannabis Steering Committee chaired by Minister Didiza and Cannabis Advisor at Presidency PMO to expedite the “sandbox regulatory interim reform”.

This interim regulatory reform focuses on conducting an evidential process within a constrained experimental environment on how best to integrate the existing and historical cultivation of cannabis by indigenous communities and Black rural farmers into the value chain across multiple demand pathways.

Kubalimi bomya basemaMpondweni abalima umya woqobo, hayi lona ukhuliswa ngokukhanyiselwa ngogesi ebusuku, uRhulumente wesizwe wenza isolotya lwezomthetho olungisela nina nikwazi ukushishina ngomya ngokusemthethweni.

Sikwavuyiswa ukuba iingcali ze-Agriculture Research Council (ARC) ne Council for Scientific & Industrial Research (CSIR) ebezimenywe yi-ECRDA kulentlangano ye-26 March 2024, zizibophelele ekusebenziseni nabalimi bomya ukwenza uvavanyo (research) kwimbewu yethu (ARC) nokuphucula i-quality ye-products (CSIR) ezinziwayo ngabantu bethu besebenzisa umya. Zonke ezi zinzame zikaRhulumente zokuncedana nabalimi bomya emaMpondweni.

Nalomtyali-mali uzovula ushishino apha eCoega uzakuthi daca ngokubanzi intsebenziswano phakathi kweshishini lakhe nabalimi bomya zokukhiqiza imveliso yomya ekwizinga lomgangatho (quality) ophezulu efunwa ngabathengi baphesheya njengeyeza (medicinal product).

The Medicinal Cannabis Subsector, through the South African Health Products Regulatory Authority (SAHPRA) issuance of medicinal cannabis licenses, is the forerunner cannabis subsector enabled by law to be a legal commercial enterprise in the country.

The investment represents the biggest investment in this subsector in the province and we hope it will act as a catalyst to those investors (locally and internationally) who have identified the province as a strategic location for cannabis investment. We are ready as this province to host these investors.

The initial investment pledge of over R100 million (for 2024) to commence with the indoor grow, packaging, Cannabidiol (CBD) extraction, and cigarette manufacturing operations that will create about ±90 direct employment opportunities is welcomed by the Province. The investment pledge of R1 billion over five (5) years is welcomed.

We commit as the Province to supporting the MEDICINAL CANNABIS FLOWER SUPPLIER PROGRAM as proposed by the INVESTOR in which it commits an immediate offtake contract to the participating hemp permit holder farmers.                                                                                                       The 1000 Ha cultivation target by the INVESTOR for the 2024 growing season could potentially generate ±3, 000 employment opportunities. This is based on an estimate of 3 jobs per hectare.

The target to cultivate about 10,000 Ha over the five (5) years period has the potential to generate about 30,000 job opportunities.

The Eastern Cape Hemp Producers Association (whose members are here today) should ensure that its hemp producer members and their farming operations are ready for this opportunity.  Use the offtake contract to solicit loans, from Government loan facilities, as a clear demonstration of your commitment to this opportunity made possible by the Provincial Government.

As we have demonstrated during our collective engagement with the INVESTOR, we directed our STATE-OWNED ENTITIES such as the ECRDA and ECDC (and supported by SEDA and SEFA) to immediately agree on how as SOEs are going to syndicate their resources to support this initiative.

We extended the invitation to the representatives from our local Tertiary Education Institutions, NMU, RHODES, FORT HARE, WSU, FORT COX COLLEGE, as we don’t want to leave key critical state stakeholders (and others) in advancing the sector innovation. These STAKEHOLDERS will collaborate with the PROVINCIAL DEPARTMENTS, SOEs, and the INVESTOR to create a sector innovation program to enhance the global competitiveness of the province.

The role of the District Development Agency of the Metropolitan and District Municipalities in delivering this program cannot be over-emphasized as our Constitutional Framework enjoins the Sphere of Government to actively partake in economic development.  Your presence in this launch signifies your importance.

The province is grateful to Nehawu Investment Holdings, as the majority shareholder in Medigrow, and other shareholders for taking the bold decision to identify the Province as your investment destination.

As the head of the 6th Provincial Administration, we are equally proud to have delivered on the promise we made to the people of the Eastern Cape Province to ensure that the province is a significant player in the national cannabis economy.
With those few words, we once again welcome Medigrow to the Eastern Cape economy. We wish you success in your business and we will walk this journey with you.

Thank you.